Wedbush Securities Inc has agreed to pay a fine of $425,000 as a part of a settlement with the Financial Industry Regulatory Authority (FINRA).
Between September 2009 and March 2022, Wedbush Securities published quarterly reports on its securities that failed to disclose required information; provided inaccurate and incomplete information; or were not timely published. In addition, between January 2020 and December 2021, Wedbush Securities failed to notify customers of the availability of information concerning NMS securities.
Therefore, the firm violated Rules 606(a) and 606(b)(2) of Regulation NMS under the Securities Exchange Act of 1934 and FINRA Rule 2010.
Between January 2015 and May 2022, Wedbush Securities published monthly reports regarding its execution of covered orders that contained inaccurate order data or were not timely published, in violation of Rule 605 of Regulation NMS and FINRA Rule 2010.
Between September 2009 and March 2022, Wedbush Securities failed to establish and maintain a supervisory system, including written supervisory procedures (WSPs), reasonably designed to achieve compliance with Rule 606 of Regulation NMS, and between January 2015 and March 2021, the firm failed to conduct any supervisory review of its Rule 605 reports.
As a result, the firm violated NASD Rule 30102 and FINRA Rules 3110 and 2010.
On top of the $425,000 fine, the firm has agreed to a censure.
